The growth rate of an investment shows how much its value increases over time, helping to evaluate performance. A common way to calculate this is by using the compound annual growth rate (CAGR), which ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...